New Construction Loans We’ll help you build it. RBFCU offers one-time close construction loans with flexible terms, designed to help you finance the building of your new home. These loans offer a short-term, fixed-rate construction period which converts to a permanent fixed-rate mortgage upon completion of construction.
GSF Mortgage Corp. recently announced its new Single Close Construction Loan program, which it says will speed up the construction loan.
· Securing a construction loan will require more time and money than a conventional loan. Banks will require more documentation for a construction loan. Single Close’ loans finance the lot and the home and serve as long-term financing. Two Step’ loans are used to finance the purchase of the lot and construction.
A single-close construction loan only requires one appraisal before closing on the final loan. Avoid intervening liens. An intervening lien happens when the borrower gets a two-time close loan that does not convert to permanent financing and requires a second closing for the second loan.
Similar to a standard purchase or refinance, except the Single-Close Construction Loan disburses funds to the builder at various stages of the construction CONSTRUCTION LOAN DETAILS. 12-month construction terms with 90% Loan to Value (LTV) up to $750,000, and 85% LTV up to $1,000,000
Single Close Construction Loans. This product allows you to construct and permanently finance your new single family, owner occupied primary or secondary residences with just one loan. You save money by avoiding two loan closings and the associated duplication of loan fees, closing costs.
A Construction-to-Permanent Single Closed loan can provide financing for both the construction loan and the permanent loan. The benefits of a single close option is there is only one closing and no re-qualifying for the permanent loan, saving customers time and money.